Bank of America (BAC) Beats Q2 Views; Capital Ratios Tighten, GSE Costs May Still Weigh
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Price: $36.97 +3.35%
EPS Growth %: -11.7%
Financial Fact:
Net interest income: 10.2B
Today's EPS Names:
MAXN, CSTR, ACU, More
EPS Growth %: -11.7%
Financial Fact:
Net interest income: 10.2B
Today's EPS Names:
MAXN, CSTR, ACU, More
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Bank of America (NYSE: BAC) shares are stronger pre-market following solid second-quarter earnings results. The stock last traded at $9.82, up 1 percent from Monday's closing price.
Following in the steps of peers JPMorgan (NYSE: JPM) and Citigroup (NYSE: C), which reported last week, BofA beat expectations amid credit loss improvements and strengthening capital ratios.
Net income in the quarter, excluding mortgage-related costs, was $3.7 billion, or 33 cents per share, stronger than the 29 cents expected on the Street. Including GSE-related costs, BofA lost 90 cents in the quarter, narrower than the 93 cents expected.
Revenue fell about 55 percent to $13.2 billion in the quarter. The Street was looking for more modest revenue in the neighborhood of $12.34 billion.
Provision for credit losses fell 60 percent, while the allowance for loan and lease losses to annualized net charge-off coverage ratio increased to 1.64x in the second quarter of 2011, compared to 1.18 times in the second quarter of 2010.
Tier 1 Capital Ratio was 8.23%. Book value per share fell from $21.45 last year to $20.29. No word about expectations for Basel III requirements was mentioned in the release.
The company updated the range of possible losses for the remainder of its exposure with respect to non-GSE investor representations and warranties provision: up to $5 billion over accruals at the end of the second quarter of 2011.
Following in the steps of peers JPMorgan (NYSE: JPM) and Citigroup (NYSE: C), which reported last week, BofA beat expectations amid credit loss improvements and strengthening capital ratios.
Net income in the quarter, excluding mortgage-related costs, was $3.7 billion, or 33 cents per share, stronger than the 29 cents expected on the Street. Including GSE-related costs, BofA lost 90 cents in the quarter, narrower than the 93 cents expected.
Revenue fell about 55 percent to $13.2 billion in the quarter. The Street was looking for more modest revenue in the neighborhood of $12.34 billion.
Provision for credit losses fell 60 percent, while the allowance for loan and lease losses to annualized net charge-off coverage ratio increased to 1.64x in the second quarter of 2011, compared to 1.18 times in the second quarter of 2010.
Tier 1 Capital Ratio was 8.23%. Book value per share fell from $21.45 last year to $20.29. No word about expectations for Basel III requirements was mentioned in the release.
The company updated the range of possible losses for the remainder of its exposure with respect to non-GSE investor representations and warranties provision: up to $5 billion over accruals at the end of the second quarter of 2011.
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